Land banking (southern-style): Could this work for Springfield?

[sheclown]

Land Banking is being used to eliminate blight from several northern cities and counties-- places which have lost density & jobs --first from the loss of industry and finally from the economic and foreclosure crises. 

With certain fundamental changes, the concept of Land Banking could also preserve Springfield, if thoughtfully crafted and carefully run.

Walnut Court, PSOS's first attempt at "land banking"

In 2009 HUD embraced land banking as a "best practice" in dealing with the real estate market crash and the foreclosure crisis.

Land Banking as defined by:


A land bank is a public authority created to efficiently hold, manage and develop tax-foreclosed property.(1) Land banks act as a legal and financial mechanism to transform vacant, abandoned and tax-foreclosed property back to productive use. Generally, land banks are funded by local governments' budgets or the management and disposition of tax-foreclosed property.(2) In addition, a land bank is a powerful locational incentive, which encourages redevelopment in older communities that generally have little available land and neighborhoods that have been blighted by an out-migration of residents and businesses.(3) While a land bank provides short-term fiscal benefits, it can also act as a tool for planning long-term community development. Successful land bank programs revitalize blighted neighborhoods and direct reinvestment back into these neighborhoods to support their long-term community vision.

http://www.umich.edu/~econdev/landbank/

It is a tragedy that whole scale demolitions are part of Land Banking Northern-style.  That plan cannot (of course) fly here in Jacksonville.  One wonders where are the preservationists in Genesee County?

Be that as it may, looking at the land banking process, we can take some lessons and develop a plan to place our neglected historic properties (and those properties eligible for historic status -- ie. older than 50 years).

[thelakelander]

The scary thing about landbanking is most of those northern cities are simply demolishing the properties they acquire. Most of those places look a hot mess waiting for redevelopment on a grand scale that will never come.  As someone said in another discussion board (SSP), you can't out-suburb the suburbs.  I think a lot of changes would need to happen with COJ for a landbanking strategy of rehabbing existing buildings to be successful locally.

Nevertheless, I've been looking into how Chicago uses NSP funds for neighborhoods similar to Springfield and Durkeeville.

http://www.chicagonsp.org/index.html

Having the opportunity to walk through Logan Square two months ago, I'd say whatever they are doing is working. Btw, is there a similar COJ website for how our NSP funds are being used?

Random Logan Square

[sheclown]

The ultimate goal for land banking in Springfield would be to protect the neglected historic homes.  In order to do that, these steps would have to be taken.

1.) MOTHBALLED:  the property would have to be mothballed to protect it from whatever happens next.  An important component of this would be adding those properties which are 50 years or older but not currently in a historic district to the mothball eligibility list.  This would help the Eastside, Durkeeville, North Springfield.

2.) FINE REMOVAL:  those effin' rolling fines pollute the title -- make it impossible to get financing -- penalize the owner and all subsequent owners -- makes it blooming IMPOSSIBLE to even GIVE a property away.  So the rolling fine removal takes mothballing a step further and removes all rolling fines once the property has achieved mothball status.  Remember that the rolling fines are an attempt to remove blight.   

3.) GET RID OF DIRTY DEEDS:  clean up the title.  Some houses in Springfield are so fouled in probate and deed issues that prospective buyers faint in frustration

4.) PAY OFF BACK TAXES:  Use city funds to pay off the back taxes with the understanding that once it is a viable structure, the city can re-coup those lost funds.  And while we are at it, adjust the property values to adequately reflect the value.

5.) GIVE IT AWAY:  Use a web site to list all properties, their progress, their challenges.  Develop a matrix to determine who the house should go to.  Gather a board of community members to review applications.  Involve the neighborhood as much as possible. 

6.) PROVIDE SUPPORT:  Have resources available to help with historic tax credits.  Use CDBG money to bring in more facade grants to the neighborhood.

[sheclown]

The scary thing about landbanking is most of those northern cities are simply demolishing the properties they acquire. Most of those places look a hot mess waiting for redevelopment on a grand scale that will never come.  As someone said in another discussion board (SSP), you can't out-suburb the suburbs.  I think a lot of changes would need to happen with COJ for a landbanking strategy of rehabbing existing buildings could be successful locally.

Nevertheless, I've been looking into how Chicago uses NSP funds for neighborhoods similar to Springfield and Durkeeville.

http://www.chicagonsp.org/index.html

Having the opportunity to walk through Logan Square two months ago, I'd say whatever they are doing is working. Btw, is there a similar COJ website for how our NSP funds are being used?

I share your concerns.

Interesting enough, COJ will have hell to pay regarding the NSP funds.  It is not in the fact that historic houses were demolished, but rather that they did not follow the guidelines for using the funds.  And perhaps just an important is the fact that they hide what they are doing.  Public Records requests are torture to get and this information should be readily available and is, in fact, required.

[sheclown]

Under what circumstances should a house be "taken" from its owners?

Well, first of all, it seems as if once a condemned sign is posted on a house, it is essentially "taken" by the city.  The city has sucked out 75 % of its value when it slaps on the bright orange sticker.    Then a person needs to get permission to enter his own property (now remember that there is no clear checklist for condemning the property, nor is there a requirement that the condemnation should be specific -- one can just write "entire" on document).

And really scary stuff, the city can condemn for a broken window.

[thelakelander]

Has Jax rehabbed anything with NSP money?

[sheclown]

We could start with the unsafe structures list. 

The owners could be contacted and given and opportunity to mothball their structures in return for a release from the accumulated rolling fines.  And given the assurance that the fines would be held at bay as long as the property remains mothballed.

After a period of time, say 6 months, if a COA application for mothballing isn't approved by the Historic Preservation Commission, the owner risks losing his property to a land bank.

[ChriswUfGator]

Land banking as a concept makes me uncomfortable here, COJ is too greedy and politicized for this to work properly, it's one of those things that sounds good at first blush but won't work for reasons that will seem obvious later. I think they need to start with providing a rational and reasonable process to end rolling fines, and they need to substitute city-funded mothballing for demolition (which would actually save them money), and then call it a day.

One of the irksome things about COJ is that every proposed "solution" always involves punishing somebody or fucking with their property rights. I'm tired of that. A few of the landowners deserve it, but the vast majority are victims of MCCD run amok and exacerbated by a bad economy. What I don't like is that the way this will play out with COJ is step one of this suggestion will be "take their property, and then..." and I'm not comfortable with that. First, the practical concern, COJ almost always proves to be a worse landlord than anybody they complain about. Look at LaVilla. Second, the ethical one, this whole thing will just add insult to injury for a lot of people.

Lastly, with Springfield, most of these properties aren't actually abandoned like in areas where land banking actually works, and there is not a lack of demand by buyers, they've just been rendered economically unviable by COJ. This is an inappropriate solution to an artificially-created problem that COJ's bad policy decisions are responsible for in the first place.

[thelakelander]

Here's a pretty interesting look at how a few places are using federal funds to stablize certain areas of town. I guess Jax is currently utilizing a strategy similar to Detroit, except we don't see the importance of following the rules for some reason.

What Chicago can learn from other locales, and vice versa

Chicago is not alone in thinking about how to use NSP dollars to create affordable rentals and stabilize neighborhoods.

A spokesman for the U.S. Department of Housing and Urban Development, which administers the NSP, said funds are being applied differently in cities and counties across the country, according to each place's temperament. Some places – such as Detroit and Cuyahoga County, in Ohio – use demolition as a primary strategy for stabilizing communities. Other locales started off with a strategy that emphasized homeownership and have since shifted to more rental approaches.

In Milwaukee, for example, there is strong demand for affordable rental apartments. Between 400 and 500 rental units were created in Milwaukee using money from the second round of NSP, said Maria Prioletta, the city's redevelopment manager. She said because more units are at stake than with single-family home transactions, rehabbing apartments allows the city to have a strategic impact on particular neighborhoods.

Ditto for Pinellas County, Florida, which comprises St. Petersburg and Clearwater and has endured a large number of foreclosures in the past few years.

Anthony Jones, the county's community development director, said the housing crisis showed that homeownership isn't necessarily good for everyone, especially people of modest means.  So he and his colleagues have worked to acquire and rehab rental units as part of their evolving approach to using NSP funds.

When asked if he had any advice for Chicago as it embarks down this new path of creating rentals in concentrated areas, Jones said Chicago should consider putting properties in land trusts, which can impose rental price restrictions beyond the limits required by the NSP, and for longer periods of time.

Maybe, said Ludwig, but land trusts can also serve as a deterrent to potential investors. And, she said, rents are already low in the Chicago neighborhoods where the NSP is focused.

http://www.chicagonsp.org/news/1510

[sheclown]

Chris,

If the mothball ordinance were changed to remove all accumulated rolling fines, that would accomplish a great deal, wouldn't it?

But what about the Tarpon owned properties?  How can they be encouraged to put their properties in the hands of people who will care for them?

And btw, I agree with everything you say regarding your concerns on land banking.

[thelakelander]

Lastly, with Springfield, most of these properties aren't actually abandoned like in areas where land banking actually works, and there is not a lack of demand by buyers, they've just been rendered economically unviable by COJ. This is an inappropriate solution to an artificially-created problem that COJ's bad policy decisions are responsible for in the first place.

I agree here.  It seems if COJ can get its act in order, there's already a market for revitalization. That's not the case in places like Detroit and Youngstown.

[ChriswUfGator]

Here's a pretty interesting look at how a few places are using federal funds to stablize certain areas of town. I guess Jax is currently utilizing a strategy similar to Detroit, except we don't see the importance of following the rules for some reason.

What Chicago can learn from other locales, and vice versa

Chicago is not alone in thinking about how to use NSP dollars to create affordable rentals and stabilize neighborhoods.

A spokesman for the U.S. Department of Housing and Urban Development, which administers the NSP, said funds are being applied differently in cities and counties across the country, according to each place's temperament. Some places – such as Detroit and Cuyahoga County, in Ohio – use demolition as a primary strategy for stabilizing communities. Other locales started off with a strategy that emphasized homeownership and have since shifted to more rental approaches.

In Milwaukee, for example, there is strong demand for affordable rental apartments. Between 400 and 500 rental units were created in Milwaukee using money from the second round of NSP, said Maria Prioletta, the city's redevelopment manager. She said because more units are at stake than with single-family home transactions, rehabbing apartments allows the city to have a strategic impact on particular neighborhoods.

Ditto for Pinellas County, Florida, which comprises St. Petersburg and Clearwater and has endured a large number of foreclosures in the past few years.

Anthony Jones, the county's community development director, said the housing crisis showed that homeownership isn't necessarily good for everyone, especially people of modest means.  So he and his colleagues have worked to acquire and rehab rental units as part of their evolving approach to using NSP funds.

When asked if he had any advice for Chicago as it embarks down this new path of creating rentals in concentrated areas, Jones said Chicago should consider putting properties in land trusts, which can impose rental price restrictions beyond the limits required by the NSP, and for longer periods of time.

Maybe, said Ludwig, but land trusts can also serve as a deterrent to potential investors. And, she said, rents are already low in the Chicago neighborhoods where the NSP is focused.

http://www.chicagonsp.org/news/1510

The difference between those examples and what we've done is that using NSP funds for demolition is generally considered appropriate by HUD in areas suffering population loss, it's something of a last resort. We've actually had a growing, not shrinking, population, and given our local conditions it was really a gross misuse of funds that could have positively impacted the community.

[sheclown]

So, what does COJ need to do (with regards to neglected properties) to get its act together?

[ChriswUfGator]

Lastly, with Springfield, most of these properties aren't actually abandoned like in areas where land banking actually works, and there is not a lack of demand by buyers, they've just been rendered economically unviable by COJ. This is an inappropriate solution to an artificially-created problem that COJ's bad policy decisions are responsible for in the first place.

I agree here.  It seems if COJ can get its act in order, there's already a market for revitalization. That's not the case in places like Detroit and Youngstown.

You and I agree.

[sheclown]

Has Jax rehabbed anything with NSP money?

We pulled info from the city's website that said 62 houses were rehabbed, 25 new ones built and 181 structures demolished using NSP 1 funds (26.2 million dollars).

http://www.coj.net/departments/neighborhoods/docs/housing-and-community-development/community-development/2011-12-action-plan-7-15-11-%281%29.aspx

Joe and I added it up.  Seems like there is a lot of money for a piddly amount of work.

62 rehabs at say....$100,000 each ?     $6.2 mil

25 new builds at say.....$150,000 each?  $3.8 mil

181 demos at say....$10,000 each   $1.8 mil

That adds up to 11.8 million dollars.  Where's the other 14.4 million?